OBHR 317 Final PDF

Negotiation Distributive vs. Integrative Negotiations: Distributive Negotiation: Involves a zero-sum game where one party's gain is another's loss. The goal is to maximize one's own share of resources. ○ Example: Haggling over the price of a used car. Integrative Negotiation:...

Negotiation Distributive vs. Integrative Negotiations: Distributive Negotiation: Involves a zero-sum game where one party's gain is another's loss. The goal is to maximize one's own share of resources. ○ Example: Haggling over the price of a used car. Integrative Negotiation: Aims to find win-win solutions that create value for all parties. It focuses on common interests and mutual gains. ○ Example: Negotiating a job offer where you agree on a lower salary but get more vacation time (both parties get something of value). Key Elements in Negotiation: Target Point (Aspiration Point): Your ideal outcome in the negotiation. Should be realistic based on information. ○ Example: Wanting to sell your house for $600,000. Resistance Point (Walk Away Point): The point beyond which you prefer no agreement. Never reveal this point to the other party. ○ Example: You won't sell your house for less than $575,000. Initial Offer (Asking Price): Your first proposal in the negotiation. ○ Example: Listing your house for $625,000. BATNA (Best Alternative To a Negotiated Agreement): Your best option if the negotiation fails. It influences your target and resistance points. Alternatives give you power to walk away. ○ Example: If you are selling a house, your BATNA could be renting it out instead. Conflict Management Types of Conflict: Cognitive (Task) Conflict: Task-oriented and focuses on differences in perspectives and judgments regarding an issue. Can be functional as it can lead to identifying solutions. ○ Example: Disagreement among a project team about the best way to approach a problem. Affective (Relationship) Conflict: Emotional and aimed at a person, not the issue, often involving personality clashes and conflicting goals. Can result in stress and poor communication.  ○ Example: Personal animosity between coworkers that affects their ability to collaborate. Is Conflict Good?: There is a concaving relationship between conflict and performance. Low levels of conflict can lead to apathy and a lack of innovation. Moderate levels of conflict are good because it can lead to more alternatives and better performance. High levels of conflict can lead to dysfunction and reduced productivity. Five Styles of Conflict Management: Forcing: Satisfying your own needs at the expense of others. It involves using authority or manipulation to achieve goals. Can cause resentment and retaliation. ○ Example: A manager uses their authority to impose a decision on their team. Avoiding: Neglecting the interests of both parties by sidestepping or postponing the conflict. It reflects an inability to handle emotions. ○ Example: Ignoring a conflict with a coworker in the hopes it will go away. Accommodating/Yielding: Satisfying the other party's concerns while neglecting your own. It often involves preserving a relationship at the expense of your own needs. ○ Example: Agreeing with a coworker's idea, even if you don't think it's the best option to avoid an argument. Compromising: Seeking partial satisfaction for both parties. It is an expedient solution and can lead to suboptimal results. ○ Example: Agreeing to a middle ground in a salary negotiation, where neither party gets everything they initially wanted. Collaborating/Problem Solving: Addressing concerns of all parties to find a solution that satisfies all goals. It involves no assignment of blame. ○ Example: Working with a client to find a solution that meets everyone's needs. Dark Side of Power Overarching Conclusion of Asch, Milgram, and Zimbardo's Experiments: Ordinary people can be influenced to behave in ways they normally would not, by social pressures (Asch), authority (Milgram), or the roles they are assigned. These experiments show that people can engage in terrible behavior because of situational pressures, not necessarily because they are inherently bad. Bases of Power General Dependency Postulate: The greater B's dependency on A, the greater A's power over B. Dependency increases when resources are important, scarce, and non-substitutable. Three Responses to Power: Commitment: The person is enthusiastic and carries out the task willingly. Compliance: The person goes along with the request grudgingly, putting in minimal effort. Resistance: The person is opposed to the request and tries to avoid it. Different Bases of Power: Legitimate Power: Power based on formal authority and role within an organization. ○ Example: A CEO has legitimate power over their employees. Reward Power: The ability to distribute rewards, such as promotions or bonuses. ○ Example: A manager has reward power over their team members by being able to give raises. Coercive Power: The ability to apply punishment. It is fear-based. ○ Example: A supervisor using threats to ensure employees follow rules. Expert Power: Power based on a person's experience, knowledge, and skills. ○ Example: A doctor has expert power over their patients. Referent Power: Power based on liking, respect, and charisma. ○ Example: A celebrity has referent power over their fans. Informational Power: The control over the flow and interpretation of information or the ability to cope with organizational uncertainties. ○ Example: A person who has exclusive knowledge of a company's strategy has informational power. Contingencies of Personal and Positional Power Positional Power:  Substitutability/Relevance: Power is strongest when someone has a monopoly over a valued resource or when there are no alternative resources. ○ Example: An employee who is the only person with a specific technical skill has high positional power. Centrality: The degree of importance and interdependence between the power holder and others. Centrality increases with the number of people dependent on you and how quickly they are affected by that dependence. ○ Example: A manager who oversees a critical project that affects many departments has high centrality. Flexibility/Discretion: Having the freedom to exercise judgment and improvise or innovate. Newer positions have more flexibility. ○ Example: A position that allows a high degree of creativity or flexibility to deal with changing situations provides a person with discretion. Visibility: Awareness of a person and their resources. Interacting with influential people increases visibility. ○ Example: An employee who regularly presents to the CEO will have higher visibility. Personal Power: Expertise: Work-related knowledge acquired through education, self-directed learning, and experience. ○ Example: A software engineer with a deep understanding of complex systems has expertise. Personal Attraction: Based on charisma, agreeable behavior, and physical characteristics. ○ Example: A team leader who inspires their team with their charm has personal attraction. Influence Tactics Nine Influence Tactics: Salient Authority: Complying because you are aware of the requester’s legitimate or expert power. Assertiveness: Actively applying legitimate and coercive power. Information Control: Manipulating others' access to information. This can include spreading rumors or whistle-blowing. Coalition Formation: People with common interests banding together to exert influence.  Upward Appeal: Seeking support from higher authorities. Ingratiation: Increasing the perception of liking or similarity to another person. Consultation: Getting others involved in the decision-making process. Exchange: Offering favors or benefits in exchange for support. Persuasion: Using facts, data, or values to support your ideas. Impression Management: Actively shaping one's public image. Effective in interviews and performance evaluations. Tactics include ingratiation, favors, excuses, apologies, self-promotion, and flattery. Cialdini's Seven Tactics of Influence: Reciprocity, Commitment, Consistency, Social Proof, Liking, Authority, Scarcity. 2ND HALF Leadership vs. Management Leadership vs. Management: Leadership is about change and inspiring a vision, while management is about stability and maintaining the status quo. Example: A leader inspires the company to take risks and innovate, while a manager makes sure day-to-day operations run smoothly. Transactional and Transformational Leadership Transactional Leadership: Focuses on the exchange of resources and rewards for performance. Leaders clarify expectations and provide consequences for meeting or not meeting them. Example: A manager offers bonuses for meeting sales goals. Transformational Leadership: Occurs when leaders and followers raise one another to higher levels of motivation and morality. Leaders appeal to higher ideals like justice and equality and aim to transform followers' self-interest for the sake of the organization. Example: A leader inspires their team to believe in a mission of sustainability, rather than just focusing on profits. The Four I's of Transformational Leadership: While not explicitly mentioned in the sources, the "Four I's" of transformational leadership generally include: Idealized Influence (Charisma): Leaders act as role models and are admired and respected by their followers. Inspirational Motivation: Leaders inspire their followers with a compelling vision of the future. Intellectual Stimulation: Leaders encourage creativity and challenge followers to question assumptions. Individualized Consideration: Leaders provide support and mentorship to each follower, considering their individual needs. Criticism of Transformational Leadership: Lack of Conceptual Clarity: The theory lacks clear definitions and has overlapping factors. Overlap with Charisma: It is sometimes difficult to distinguish between transformational and charismatic leaders. Heroic Leadership Bias: It focuses too much on the leader and not enough on the reciprocal influence of followers and other players. Pseudo-transformational Leadership: Leaders can use transformational leadership tactics for their own self-interest, not for the good of the group. ○ Example: A CEO might inspire employees with a vision of success, but actually be focused on personal gain. Rational Decision-Making Model and Possible Biases Rational Decision Making: A process of choosing a course of action that makes consistent, value-maximizing choices within specified constraints. It assumes problem clarity, known options, clear preferences, constant preferences, no time or cost constraints, and a maximum payoff. Core Issues with Rational Decision-Making Model: It's based on assumptions that are often not met in reality. People rarely have full information or the capacity to process it all, and decisions are often influenced by biases. How People Actually Make Decisions:  Bounded Rationality: Limitations on one's ability to interpret, process, and act on information. ○ Example: When choosing a school, you do not consider every possible school and program. ○ Ikea Effect (not in sources): The tendency for people to place a disproportionately high value on things they partially create. Satisficing: Identifying a solution that is "good enough" rather than the optimal one. People tend to choose the first acceptable option. ○ Example: Hiring the first candidate that meets the minimum qualifications rather than continuing the search. Judgment Shortcuts (Biases) Overconfidence Bias: Believing too much in one's own ability to make good decisions, especially outside of their expertise. ○ Example: A novice investor thinking they can outperform the market. Dunning-Kruger Effect: Low-ability individuals overestimate their performance/ability, while high-ability individuals may underestimate it. ○ Example: An incompetent employee believes they are doing a great job. Confirmation Bias: Selecting and using only facts that support a decision. ○ Example: Only reading news articles that support your existing political views. Availability Bias: Emphasizing information that is most readily available at hand. Recent and vivid information is more impactful. ○ Example: Thinking that shark attacks are more common than car accidents because you hear about them more often in the news. Randomness Error: The tendency to believe that we can predict the outcome of random events, often trying to make meaning out of random patterns. ○ Example: Superstitions. Loss Aversion: The tendency to prefer avoiding losses to acquiring gains. People are more likely to take a chance to avoid a negative outcome than to achieve a positive one. ○ Example: People are more likely to take a chance to avoid a $10 loss than to gain $10. Sunk Cost Fallacy: The tendency to persist in an activity because of previously invested effort, time, or money, even if it is not beneficial.  ○ Example: Continuing to watch a terrible movie at the theater because you already paid for the ticket. Irrational Escalation of Commitment: Increasing commitment to a decision in spite of evidence that it is wrong, especially if you are responsible for the decision. ○ Example: Pouring more money into a failing project to avoid admitting it was a mistake. Anchoring Bias: Using early, first-received information as the basis for making subsequent judgments. ○ Example: Using the first offer in a negotiation as a reference point when making counter offers. Planning Fallacy: The tendency to underestimate the time required to complete a task. ○ Example: Thinking a home renovation project will be done in two weeks when it will likely take a month or more.